10 Francs CFA – Central African States

In 1965, the currency situation in the Central African States was defined by the newly established Central African CFA franc (XAF), which had been created just five years prior. This currency was issued by the Banque Centrale des États de l'Afrique Équatoriale et du Cameroun (BCEAEC), serving the former French Equatorial Africa territories: Chad, the Central African Republic, the Republic of the Congo, and Gabon, along with Cameroon. The system was a direct legacy of colonial monetary policy, designed to ensure stability and facilitate continued economic integration with France through the CFA franc zone.

The key feature of the arrangement was the fixed parity and guarantee provided by the French Treasury. The CFA franc was pegged at 1 CFA franc = 0.02 French francs (or 50 CFA francs = 1 French franc). This peg was backed by an operating account held in Paris, which required member states to deposit a significant portion of their foreign exchange reserves with France, in return for an unlimited convertibility guarantee. This provided monetary stability and low inflation for the member states but also meant they had surrendered direct control over their monetary policy and external reserves to a foreign power.

Politically and economically, 1965 fell within a period of early post-independence, where these nations were grappling with the dual objectives of sovereign economic management and the practical benefits of a stable, shared currency. While the system facilitated regional trade and attracted some French investment, it was also a point of contention for emerging nationalist sentiments, which viewed the fixed parity and French oversight as a limitation on financial sovereignty and a symbol of continued Françafrique influence. Thus, the currency situation was one of institutionalized stability, but also a foundational element in the ongoing debate about economic dependency and regional cooperation in Central Africa.